Successful Representation of KB Kookmin Bank in a civil Suit Filed in Connection with an Alleged Cartel on CD Interest Rates [Seoul Central District Court, November 17, 2017]
2017.11.17.
Yulchon represented KB Kookmin Bank and won a civil suit in connection with an alleged cartel on CD interest rates among six commercial banks (the “Banks”) including KB Kookmin Bank (the “Client”).
In July 2012, the Korea Fair Trade Commission (the “KFTC”) launched an investigation on the allegation that the Banks had formed a cartel to rig CD interest rates. Following the KFTC’s investigation, in 2014, a group of nearly 1,200 plaintiffs, including the Financial Consumer Agency, sued the Banks seeking damages.
In July 2016, after four years of investigation, the KFTC closed the investigation without making any charges against the Banks. The civil trial evolved into full-fledged disputes thereafter. The likelihood of success on the merits was high to begin with as the KFTC decided not to press charges after four years of investigation. However, there were a number of highly contentious issues such as whether to submit sensitive, internal materials like chat logs. The court ordered the Banks to produce such sensitive materials, but Yulchon managed to minimize the Client’s exposure and ultimately led to a dismissal of the Plaintiffs’ claim.
Kyoung Yeon Kim, Seung Jae Lee, and Hee Jin Yun of Yulchon’s Antitrust Group represented KB Kookmin Bank in this matter.
